$5.3 Billion Trust Fund to Allocate 10% of Assets in Bitcoin

2020-11-30 16:24

Global investment firm Guggenheim Trust Fund filed an SEC application last Friday to purchase Grayscale’s Bitcoin product, GBTC. The fund can invest north of $500 million in GBTC. 

Bitcoin’s Macro Opportunity 

Guggenheim Macro Opportunities (GIOIX) is one of eight funds managed by the parent firm, Guggenheim Trust Fund, with a $233 billion net value.

The SEC filing, dated Nov. 30, reads: 

“The Guggenheim Macro Opportunities Fund may seek investment exposure to bitcoin indirectly through investing up to 10% of its net asset value in Grayscale Bitcoin Trust (‘GBTC’).” 

The fund’s profile consists of fixed-income assets such as bonds and cash.

According to Bloomberg, the asset under management (AUM) of GIOIX is $5.3 billion, extending their GBTC margin to $530 million. 

Grayscale LLC is the world’s largest cryptocurrency trust fund with over $12 billion in AUM. Its Bitcoin Trust Fund (GBTC) manages over $9 billion in BTC. 

Currently, Microstrategy Inc. has the largest exposure to the leading crypto among publicly-listed companies. In August and September, the firm invested $425 million in BTC, which is presently valued at $713 million. 

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